tv Varney Company FOX Business July 17, 2013 9:20am-11:01am EDT
♪ imus in the morning ♪ >> ben speaks. he has plans to print less. oh, yes, he does. the markets react up a little. but wait, there's more to come. good morning, everyone. we don't know exactly what he's going to say when he's questioned an hour from now on capitol hill. politicians will try to get him to say exactly what he's up to. that's what you might see some more market reaction. right now the market has moved up a little. obamacare also under scrutiny on the hill today. businesses say obamacare will force them to hire part-timers. jay carney says that quote, belies the facts.
really? we have the numbers. the president says the economy's recovering, really? we have the report from the left which says workers are getting worse off. stay right there, everyone, it's hot outside. and "varney & company" is about to begin. she's always been able to brighten your day. it's just her way. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, e an unsafe drop in bloopressure. do not drink alcohol in excess withialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactionsuch as rash,
>> i would say broadly, if you look at the economic data, the suggestion that the aca is producing full-time employment is belied by the facts. stuart: well, that comment about bomb care may land mr. carney on fantasy island maybe. mr. carney must not be watching "varney & company." here is the the latest number from the u.s. chamber of commerce. 74% of employers will fire workers or cut hours from full-time to part-time because here comes obamacare. that's right there in that survey. if mr. carney watched us yesterday he would have heard the new york federal reserve
says 11% of employers are outsourcing jobs to avoid the high cost of obamacare. you'll be hearing a lot more about obamacare throughout the day and on this program, too. the house is going to hold a hearing on the president's decision to delay the employer mandate and the house will vote on delaying both the employer and individual mandates separately. later this hour, congresswoman sheila jackson lee joins us to talk obamacare. she is a solid supporter still. we already know bernanke's scripted comments, a hint to the end of printing money. no clue, however, as to when. now, we're waiting for the q & a. you can expect republicans to get a little testy. we will bring you the fireworks if and when they happen. right now, we're waiting for the market to open. we're expecting it to open 20, maybe 30 points up for the dow, watch it live next. any last requests mr. baldwin?
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♪ nobody does it better ♪ >> yeah, well said. did you see this? a great moment at the all-star game last night. a well deserved ovation for mariano rivera, he entered the game at the end of the game, his last all-star appearance he's retiring after this season. in the next hour, i'll explain why you might not see anything
like this again. players like rivera an endangered species. that's my opinion, i'll explain it to you next hour. a minute to the opening bell and we know what ben is going to say. let's bring in larry levin, you know what what he's going to say, he's going to say i've got plans to print less. there's nothing new in that, but gives the dow a boost when trading start, right? >> it's the same old and the same old what you said, it's pushed the market up and this is no surprise. when knew when he first started buying the assets every single month, eventually they were going to stop. he is telling us the exact same thing as the beginning and when is it going to stop. when we see that. stuart: and we're waiting for q & a session, and that may be where the market moving news comes from, do you think? >> yeah, certainly, republicans are going to try to pin him down and ask him questions when are
you going to do this. you need to know, the public needs to know and if he's pinned down certainly the market is going to react to that, but if he isn't pinned down, he will be to a certain extent, the market has a good chance. but if you see that, you may have your finger on the button. >> larry levin, everyone, thank you very much indeed. the trading day this wednesday morning has begun. if you look at the indicators before the market opened, we were expecting a 20, maybe 30 point gain for the dow jones industrial average. we were offered, 18 points, not much of a pullback yesterday. up in the first half minute's worth of business. let's go through the big names that you know, yahoo! big jump in profits, up 46%, however, the money coming in, the revenue, it went down. the stock is up on the news, however, and here is gil mora s
morales. and you like what marissa mayer is doing and she celebrated her one-year anniversary. do you like yahoo! at 27? >> no, actually i'd rather own google. and the grosse pointe is goicom- down to 3% the next three years, but normally see the growth driver there for yahoo! and i think that google has them beaten hands down so i prefer google here over yahoo! if i was going to have to pick a search company. stuart: stay there, i've got more big names to go through as we start the trading session. here is bank of america, it's another bank doing well and made profits just like goldman sachs and citi. the stock price, nicole. nicole: the stock is up over 1%. they did well with global marketing and improved their credit quality though they did say as they're seeing long-term rates on the rise, they expect fewer mortgages and a lot of those come from refinancing and a majority come from refinancing and expect to see less of that.
>> b of a gets you 14 right now. take a look at tesla, a big drop yesterday after goldman dropped the price together to 84 a share and that's well below the current 107. by the way, charles payne reminds us the same goldman analyst downgraded tesla when it was at 55. come on back in again, gil, you once said that tesla was the gm of the future, gm in a nice way, you liked it back then. do you like it now? >> right. well, we -- last time i was on we were buying around 100, it ran up to 133, 135 on monday and so we actually sold into the move when it couldn't hold the 121, 122 level and we achieved the short-term trading price objectives. longer term the stock is going to have to set up consolidation and it's a lot like gm in 1915, it will need to go side ways here for a period of months as i believe the fundamentals need time to catch up to the technical action right now, but
i think the bloom is off the rose in tesla. >> okay. now, there are a couple of tech stocks which have had a really strong run recently and i want your opinions on them. gil. microsoft, everyone knows i own it. do you like it? >> i think the going higher. it broke out of a short consolidation, it's actually challenging the six-year high of 37.50 and starting to come out of the long 13-year consolidation and it's been out of the picture a long time and i'm seeing money flow back into it. if the market goes higher, microsoft is going higher with it. stuart: we'll take that. amazon, a lot of people saying it's the new apple. and a strong stock. and 3.07 this morning and here is the question, gil. is it the new apple? >> well, i send to think of it more as the new amazon. one of the arguments against
amazon has been the high pe ratio. next quarter when they announce a week or so, a nickel a share and make some money in positive earnings growth and supposed to post 1.30 in annual earnings and that's going to jump up to 10.16 a share, so, when you think about being overvalued, that's a big leap for amazon and i think that will drive the stock higher. i don't like it above 300. if you saw a pullback closer to 290, be closer there. stuart: thank you. google is trying to license tv channels for an internet cable service, how would you like to get cable tv the way you get your it. v. >> i like tv in any way, shape or form you can get it to me. google, you know they hit a new high of 928 this week as well. this is the deal. getting your tv in broadband instead of sitting on front of
your television set. stuart: and google, 929 was that on google? can you put that one up again? >> let's see. >> 920-something or other. going strong. >> it can't be 920, it has to be below 928. that was the high set on july 15th. let me ask liz. did it hit a new high, liz? >> no. >> no, it did not. july 15th is the high. >> if you've got a google stock in your portfolio, you'll take 924, i'm sure. all right, nicole, thanks a lot. the dow is up 36 points back close to 15,500 again. we've got a new study from a left wing advocacy group that says after inflation wages for lower income workers are down about 4% under president obama's tenure. let's bring in arthur brooks. it seems to be that president obama's policies are hurting the very people that they were designed to help and who
supported him in the first place. >> yeah, good morning, stuart. what are the odds of that, right? i mean, i think that you were -- you've been predicting for months, for years, that if we actually take the actions to make labor markets more rigid, that would make it harder for people to start businesses, we put regulatory barriers, guess who is going to get hurt. rich people? no, poor people are thrown out of work. the idea of having big government programs to put food stamps and unemployment insurance in front of people instead of high paying jobs is a real affront to dignity. the worst part is that nobody on the left or right is standing up to these people and nobody is becoming a warrior for the people in the bottom percent of the income distribution. >> let's look at the politics, this came from the national employment law project. it's on the left, a lot of activists involved in this group and certainly unions. it seems like there is a revolt against obamacare and there's a revolt against president obama's
policies, economic policies in particular. it seems like he's losing support of key constituents. what are the politics of this? >> well, it's pretty interesting, if you're in the bottom half of the income distribution in america today or the past four years, you see the average household income declining every year for five years,en you see real unemployment in your neighborhood, in your family, something like 15 or 18% and you see mobility has been falling actually for at least a decade. the problem politically, basically you have a president and a democratic party whose argument is the rich people, they have your stuff and i'm going to get it back. that's an envy based argument. the trouble is that the right is basically saying, you guys are moochers and people are struggling. >> i want to see a politician break the mold and say the way out of this is growth.
you give me 4, 5, 6% growth and i'll give you at least a partial solution to a lot of the income and other problems in our society. where is that politician, arthur? >> yeah, well, there, you will see more stepping forward. the trouble is those who talk about growth tend to talk about growth as if it were about the money. stuart, you and i know growth is not about the money. economic activity, free enterprise, a free society is about the morality of letting people on the bottom rise, it's about immigrants wanting to come to this country to have more opportunity. and until we get pro growth politicians who are pro morality politicians for the most vulnerable members of society. those politicians are going to continue to lose and they're not going to be able to help people. do you think that growth will come back on the political scene, next year's elections. >> it can, the only way, however, if we break out of the materialistic paradigm.
i'm an economist and i'm wired this way and love talking about growth and love talking about gdp and the stuff you love, too, until we talk about how we fight for people with growth. people are not going to listen to the basic economics. >> growth is a moral prospect. growth is good morally not just economically. who is making that case? >> that's the problem. now, more will and that's the enterprise institute. helping people to understand that the free enterprise system is a social movement for the moral good of all, especially those who are most vulnerable. you and i need to make that case. >> music to our ears. thank you very much, sir, appreciate it. >> thank you, stuart. >> to the big board, please, wednesday morning, we know what ben is going to say and he says it at 10:00, remarks prior to that and he's hinting at, yeah, i'm going to end printing and slow down printing and we don't know when or by how much. the dow is up 27 points now,
15,000. okay? we're watching gas prices, too, by the way. there's a spike and it's now 3.65 a gallon and i believe we were up another 2 cents overnight. going up roughly, 2, 2 1/2 cents each and every day. 3.65 now. obamacare, i want to say it's unravelling and now unions even coming out against the law and two key votes in the house that could end up killing the president's crowning achievement. maybe, certainly vote it down. we'll go to capitol hill. sheila jackson lee next. ♪ c'est la vie ♪ (announcer) at scottrade, our clients trade and invest
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>> modest rally, dow up early. we're waiting for ben's q & a, that could turn things around, we shall see. and gold is close to $1300 an ounce. 1296 right now. we've got a few stocks moving for you. i'm going to start with yahoo!. it beat the expectations of wall street. that's pretty good news. it's up 5%. that's not bad. by the way, profits were up 46%. the stock's up 5 cents, not bad. home builders, oh, sorry, they're down after housing start disappoint. down 10% in june. the home builders are down, but not by that much. just a fraction of 1%. most of them. let's talk obamacare. the president's key allies, that will be seniors, unions, employers, you know, they appear to be turning their backs on the health care law and today, the house is going to vote on delaying the two key provisions
of the bill. the employer and the individual mandate. we're waiting for democrat congresswoman sheila jackson lee to appear and comment on obamacare. meanwhile, melissa francis is here who's got a couple of opinions of her own. and i read it out there. unions, employers, seniors, a lot of walking away from obamacare. what do you make of it. >> if you could do math you knew this wasn't going to work out the way promised, and now everyone is waking up to that fact. if you had insurance you liked you weren't going to be able to a keep it. as you add more people to the rolls, it's going to cost someone and people working who have insurance that they like. and some expect at that unions thought they were going to get a carve out and exempt them from the problems of the rest of us. i don't know if it's that sophisticated. i think that people wanted to believe there was an easy fix that you could somehow bilk someone to pay for someone else. there isn't that kind of money to go around it.
stuart: unions may oppose, it employers may oppose it and seniors may oppose it. what would kill it, flat-out kill this thing, if democrats in the house and senate walked away from it because they don't want it around their necks in the elections next year. i don't see it happening yet. >> unless there's an easy exit. almost like a delay, a political way to do it to stave face and achieve the same thing. stuart: they've delayed the employer mandate for a year, that's the administration did that. >> yeah. stuart: if congress, senate and the house, said the individual mandate also delayed for a year, that gives you a year to work on this thing and fix it. >> perhaps, there's a way to table it indefinitely until you can figure out how to manage it or until everyone forgets. we all have short time horizons and memories, right? maybe they could table it, i don't know. stuart: wishful thinking. >> it is, because when you look at insurance companies who have come out and said, for next year, they are raising their
prices in some cases 75%, in anticipation because they are businesses with shareholders, they have to provide a service, they had to plan ahead and already raised their prices and if you think that they're going to lower them now that the mandate, it may be delayed, you're crazy, that's not going to happen. stuart: you probably follow the politics and the implementation of this closer than i do, and it seems to me, as an outsider, that we've got chaos coming down the pipe. melissa, hold on for a second. congresswoman sheila jackson lee is joining us from washington. thank you for joining us, thank you. >> good morning, thank you. stuart: the point we've been making is that some unions now oppose obamacare. a lot of employers oppose obamacare and so do some seniors, but i think you still support it. you see it going through as-is, intact, on schedule, do you? >> i'm enthusiastic about
obamacare and the affordable care act and i believe that the evidence shows that i'm right and those who attempt and want to repeal it for the 38th time are absolutely wrong. first of all, if we pass a repeal on the individual mandate, 13 million americans will become uninsured, states like new york who have seen lower costs in their health care costs will see a surge and an increase. we'll see young people lose the opportunity to be insured under their families, medicare prescription drugs prices going up for seniors, and certainly, those of pre-existing diseases in essence being thrown under the bus. so, i think there's a great value to the affordable care act and we're right to go forward. stuart: may i ask you one question about this report we've gotten from the national employment law project which suggests that low income workers have lost 4% of their purchasing power, during the obama administration? would you comment on that,
ma'am? >> well, what i would say is that the system itself is not fully implemented. and as more people go into the system, we will find that as the economists analyze when we're debating the affordable care act, that's the idea of it, to ensure that all americans, to make sure that the huge numbers of uninsured, in the state of texas, 6 million plus, once those individuals are insured having no lifetime caps and giving hospitals that treat people for money that they're not receiving, uncompensated care, we will see the cost of health care going down, it has to be a plan that insures all americans. >> miss jackson lee, i'm terribly sorry to cut it short. it's an interesting subject and come back and see us soon. >> i'd be delighted to be with you. stuart: intense debate this
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>> every morning, 6:50 a.m. eastern, our entire production team holds the show meeting. intense debate today. should we put jay carney, the president's spokesman on fantasy island? that's a sarcastic expression we use when we feel someone has lost touch with reality. we were divided, 50-50, put him on the island or cut him slack because he's doing his job. my take, to tell you the truth, i can't decide. here are the two sides of the debate. the side that says, yeah, he's living on fantasy island, jay carney was asked if obamacare prevents full-time hiring. he said that was quote, belied by the facts. here is the fantasy. the chamber of commerce says 74% of businesses surveyed will fire in order to reduce full-timers and make them into part-timers.
and the majority of new jobs created are indeed part-time. half our team said, if he denies those facts he should be on fantasy island. nowed other side says he's just doing his job, defending the president and articulating his point of view. and half of them say, do you think's going to come out and say obamacare will wreck the health care system and push millions to part-time work? of course he's not going to do that. his job is to spin the issues of the day favorably for the president and he's pretty good at it. no fantasy, just high quality spin. that's the debate. our team was and is split down the middle. but mere is where we agree 100%. obamacare is a mess. it is going to hurt the very people it was supposed to help and our health care system is headed for chaos. no spin there. no fantasy. that is reality. fore copd...
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really? dr. segel is here. ben answers questions on printing money, and scott garret is here, one of the questions. elliot spitzer and i -- he said, i asked insulting questions. we'll play part of the interview. there's a one of a kind mariano rivera, and you will never see the likes of this again. ♪ right now, berne -- ben bernanke is about to testify before the financial house services committee, and we know the prepared remarks he'll give, the reaction may take place during the q&a session coming up in a half hour. that could really move the markets. it did last time he appeared before congress. congressman, they are going to try to get him to say when he's
going to stop printing. we'll have the action when it happens. we are here with ideas of her own. >> looking through the prepared statement and got to the second to last paragraph, he said the triggers -- sorry, the 6.5% unemployment is not a trigger threshold sounding doveish more than ever before. we said all along when we got to the unemployment rate of 6.5%, that that was going to be when everybody in the bond market for sure ran for the exits. he's saying, you know, we're not going to start before that, but at that point, it's not a trigger. we won't for sure do it then and keep easy money in place beyond that. more doveish than before. if that's possible. >> those were the opening remarks. >> q&a more important, you're right. >> it could be. american express, a stock dragging the dow down, so what's with annex? >> it is dragging the dow jones industrials, down 3.3%, weighing on the dow, probably around 20
points or so, but this is per pertaining to drafts of legislation. the european commission will propose a limit of .2 #% or .3% on the fees banks charge to process debit and credit card transactions. not only are we seeing american express to the downside, but mastercard and visa under pressure. >> it's the europeans, isn't it, nicole? europeans at it again. all right, nicole, thank you very much indeed. the national employment law project released a study showing wages down not only 3% since president obama took office, but down 4.1% amongst low wage workers. that is the very group that the president's policies are meant to help. who gets the blame for this? we have the national employment law projects jack temple with us now from washington. jack, welcome to the program. i've read the report. i read the analysis. seems to me like your group is
blaming immigration, 11 million undocumented people crowding out native born people. is that where you put the blame for this? >> no, not at all, actually. the wage declines seen across major groups throughout the economy today have to do with the fact, really, that workers today just don't have the same strength and protections that help boost wages across the board, and so, for example, the federal minimum wage has not increased in the last four years. workers today have a hard time exercising a voice in collective bargaining power at work. those are the forces supported higher wages and upward mobility for workers across the country. >> no, no, no, come on, it's growth. if you get vigorous, real growth in the economy, everybody's rising. 5% growth, if that's what you get, then we would see wages rise, not fall. >> well, the story usually works the other way. when we boost wages, we boost
the spending power of workers in the economy, that's more shopping in stores giving businesses the confident they need to hire more. >> the president -- come on, jack, you have. the president's policies have not provided us, have not given us the growth that we're associate with america. the best we've done is, what? 2.5% to p #% -- 3% growth in four years? that's the best we got. if it was 6% growth, irrelevant, minimum wage, europeans relevant. more income would be going to low income people. come on. >> ask workers themselves, working families, what are the policies that are going to help them make ends meet, that the concern for workers in the economy today is can they afford the bills, the cost of living. those -- >> it is. you're right. you're right. >> higher wages are the only vehicle. >> jack, would you deny that if you got 4-6% growth, do you really believe that workers'
income, real income, would yacht rise? >> traditionally workers' income and higher wages power growth. that was the lesson of 1990s, extensive wage growth in low income workers and board as well, strong economic growth through the end of the decade. >> it's the wrong way round, jack. wrong way round. if this president would have lowered tax rates for corporations and individuals and pushed money into the private sector, that would have given you the growth. >> the lesson just doesn't show that. the major low -- >> yes, it does. >> the walmarts, mcdonalds, the retail and fast food chains driving the stagnant wages in the economy today are already incredibly profitable. they are across the board earning higher profits today than before the recession. >> but, jack -- >> the lesson is not to strengthen corporate profits, but those proforts are not trickling down into higher wages. it's policy like collective
bargaining powers for worker to ensure profits -- >> jack, i have to jump in here. >> this is funny. >> if you start with raising wages, where is the money coming from? it's not coming from a money tree. it's going to come from raising prices on the goods. who pays for the goods? the very people that you're saying don't have enough money in their bank account right now. you can't start with raising wages out of the gate. that money comes from the pockets out there. at walmart, they'll raise the prices on goods. that's how they pay for higher wages. we have -- >> the evidence -- >> we have to grow the entire economy in order to raise wages naturally rather than artificially. >> the data doesn't support that position, actually. it's not what businesses have done in the past. we have an abundance of data in the two decades looking at minimum increases. >> look at the tax cut. >> causes unemployment. you charge goods or cut hours. >> not at all. >> it comes from somewhere. >> jack, you are wrong.
when president bush lowered tax rates on individuals, he set off 48 straight months of job growth. >> and wages were stagnant throughout much of president bush's term. stagnant. >> growth gives you high -- >> we had growth. that's not the lesson of the last decade. we had strong growth and stagnant wages. >> the lesson of the obama administration is you take it off this group, the wicked rich, and you give it to the long suffering poor, and you will grow their wages, and grow the economy. that did not happen. we're in the second quarter of this year. we're down to under 1% growth for heaven's sake, jack. come on. last word to you. >> we have not pursued the policies like raising the minimum wage or done enough to protect bar beginning power to protect low wages. historical data proves that higher wages translate to higher economic growth, and in many cases, higher profits frustrate
low wage employers dpiew to savings because of increased productivity, reduced worker turnovers, and the economics are clear. >> you're a young man, but you remind me somebody from the 1950s on the left, you know, come on p. howeverrings we're out of time. come on back, we'll talk about wicked immigrants, shall we? let's do that sometime. jack temple, everyone. thank you very much indeed. back to the markets, two big names for you that are moving. ny -- nicole, yahoo. >> looking at yahoo, up 7.25%. you have the rise in profit, you have meyer doing well over this in the turn around plan, continuing with small mnas doing well with earnings that top the street, turning around for ad profit, and revenue was disappointing, and every house on wall street raised their rating or raised the price target today. fitzgerald, for example, had a buy rating, raising targets to
33 bucks up from 31, so across the board, everybody's loving it. >> quickly, matel, what's going on? >> barbie is not hot. american girl dolls are hot, but not barbie. >> who? >> american girl dolls, come on. >> oh, okay, yeah, i'm familiar. court order. >> they are hot, they are hot. the stock is down, and hasbro down with it. >> got it, a scramble there at the end. we got it. thank you very much indeed, nicole. i sat down with elliot spitzer running for controller in new york city. it got heated. the full interview for you will come up tomorrow or at least a good portion of it. here's a preview. roll it, please. >> there is a suspicion or suggestion that there's an element of -- look, i hate to say, but instability here in your personal behavior and your character. >> i did at the invitation of
producers who said let's talk about business and business theory, happy to do that. if you wish to merely have a sequence of, frankly, kind of insulting questions, that's fine. it's your show, your network, do as you wish. happy to sit here and answer them sequentially, and i will do that. >> hear more from that interview tomorrow, but me melissa is her. i have to make a comment. he is leading in the race by a very wide margin. >> i had no idea it was your network. wow, impressive. i didn't get that memo. he's leading, and you know, i think he's going to win. i mean, you know, we know he's great with money, math, and numbers, and if you want someone out there policing what government is spending, that could be a very interesting choice, setting aside everything else that's happened, and that's the question for voters. >> i contest the view he's great with money. >> i don't know. i mean, he's -- if you look at the background and experience of the person who's normally
running for the race, he's got a lot going for him. >> okay. anyway, watch more of the interview tomorrow. >> i can't wait. >> it's going to be good. okay. if you don't use it, you might lose it. a study finds people who work into their golden years have less of a risk of developing alzheimer's and/or dementia. the doctor is with us. that's right. >> that study is from the other side of the pond. not the brits. this is from france. i confused you a little bit. the french have a tightly run health care system, and their health agency looked at 500,000 people, average age of 7 # #, and they found if they held off, for each year holding off retirement and work, they decreased the risk of developing dementia by 3%. now, in france, average retirement age is 65, and they got siestas throughout the day and in italy too, as you know. i don't know if it's comparable
to here, but i agree with the general conclusion that if you are active, you're less likely to lose it. >> theory is you keep the brain going, staying active, physically, then dementia, if it comes at all, it comes in much later. >> physically, that's key. physically is key. physical exercise, eating red salmon in the morning, having a really good diet, keeping your weight down, and keeping mentally active. my father's 89 yearings old, on that computer all day long, e-mailing, absolutely active, studies have shown that bright lights help, that solving puzzles help, that eating a mediterranean diet helps, that exercising helps. meanwhile, with alzheimer's disease, affecting 5 million people in the united states, abnormal proteins build up in the brain. it's not like you can prevent this from occurring, but you stave it off by being active. i believe that, but maybe they should rise retirement age there in france. >> yeah, maybe they should. maybe we should do that here. you can stave off alzheimer's, the development of the proteins
in the brain, by physical and mental activity. you're saying that? >> no, i'm not saying that. >> you're not? >> you mischaracterized me. >> make it clear. >> you were better with jack. >> make it clear. >> proteins develop regardless of what you do, but keep the brain active and override them clogging your circuitry by staying active. in other words, using that part of the brain, you overcome what the proteens are doing. if you are inactive, you lose focus. >> could you study my brain now and see if i have proteins developing? could you do that? >> i could with a functional mri. right here, analyzing you on the program, you are sharp as a whistle. by the way, tell spitzer to come to me for a checkup before he runs anything. >> oh, goodness. >> that's not fair. there's a furl interview tomorrow. good to see you. we're on royal baby watch. someone born in england, kind of a big story for a guy like me. there is a media frenzy, but
after the coming break, we got a guest who says we shouldn't care two hoots about the royal birth. can you believe that? >> oh, no, that's terrible. >> extraordinary. ♪ ♪ in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments.
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call today and make the switch to the aarp auto insurance program from the hartford. why wait? >> ha! try this for breaking news. the ben bernanke hearing is delayed because of audio issues. microphones don't work. planning on taking you there when the congressmen starts the q&a or when the microphones pop up again. please, look at the "rolling stone's" cover of dzhokhar tsarnaev. he's on the front cover of "rolls stone"? >> this is causing so much controversy, what you need to do when you have to sell magazines, suspect it? >> that's right, exploiting it. >> they are struggling. a clever idea. they defend it by saying they tell the tale of the heart breaking or tragic tale of how this hopeful child turned into a monster. you know, they put monster at
the end to justify it, but if you look at the picture in the magazine, he looks like a rock star on the cover. i see why it offends people, and it's a clever business move, obviously. >> his story, a tragic tale, oh, really? all right, melissa. in case you missed it, last night, check this out. ♪ [cheers and applause] >> that was mariano rivera, the greatest relief pitcher of all time. the crowd on both dugouts gave him a standing ovation before he warmed up, pitching the 8th inning, record three outs in a row without any drama and earned mvp honors. here's my take on mr. rivera. enjoy this, sports fans, because you'll never see the likes of him again. not only is he the best at what he does, ever, he carries himself really well. that's even as those people who
hate the yankees respect and admire him. here's why. he's a good guy, carries himself with grace, professionalism, humble, no children out of wed wreck, he's a family man, and man of god, thankful, and he's got no tattoos. mariano rivera, the greatest ever, a dying breed in american sports. we love this guy. now this. down to the wire with the royal baby watch, and the whole world's on pins and needles including many americans, but our next guest is not happy about this american o -- ob obsession. what's wrong with americans checking out the other side of the pond waiting for the birth to the heir to the throne? >> against blue blood monarchy, you remember when we kicked out king george and brought in washington -- >> i was there. >> we're happy when a baby is born; however, it's representing
the con tippuation of a monarchy which is bad, just running around, crashing champaigne bottles on ships, a life of luxury, and because why? because they have -- >> are you serious? >> because they were born into the right family they are better than we are. do you believe that? >> wait a sec, i was born in england, not necessarily a brit. you don't think there's room for other systems in this world? >> a class system? no. not in our country at least because, you know, our folks had president, elected officials, sports figures as you mentioned workedded hard and did something for it. what have they done? nothing. they were born into it. it's wrong. it's elitist and snobby. >> a baby is joyous news. we need a diversion from everything going on in the world now, and everyone loves a fairy tale. >> oh, i don't. >> that's why historical fiction sells. the biggest authors selling
books to women about historical fiction. it's a good news story. there there's a separation between the institution of monarchy that you dislike and birth to the heir to the throne, okay, you can handle that, people interested in it? >> of course. >> britain better off without a monarchy for a thousand years that kept them relatively free and independent. >> they don't like it. >> 80% of the people favor keeping the monarchy. >> that's fine. >> rather have your daughters watch that or lindsay lohan? she's positive role model, a positive outlook, does charity, a lovely woman. >> let her pay her way. that's fine. better to go the american way and earn it and not be born into it. >> who should we hold up to young woman to replace her? who's another positive roll model?
we always look at the kim kardashians, the girls out there making sex tapes. >> look at mr. rivera. it was lovely, great, worked hard for it. >> you know, melissa's got a point. arguably, the cay dashians are american royalty. >> they had a preeing pregnancy. they stand for completely different things. >> i don't think that's threw. they don't think it's royalty. i disagree with that. >> it's who holds our fascination. she gets the same level of media time, kim kardashian does, as the princess does. who do you want your daughter to look at? why don't we have successful young women success models on cover of magazines? they aren't. >> take queen kim and run with it. >> no thanks. >> thank you very much indeed. >> god bless america. >> yes, absolutely. >> we can all agree on that. >> it's a big world, room for all systems.
>> we wish them a happy, healthy baby. not the monarchy. >> well, that's -- all right, you may be back, maybe. [laughter] no, i don't know. we're also watching ben bernanke on capitol hill. make no mistake about it. what he says matters to your money. deal with that next. ♪ peace of mind is important when you're running a successful business.
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it. and at the ben bernanke hearing on capitol hill, and started with prepared testimony and certainly haven't started with a q&a. and if microphones don't work they can't do it. and not exactly in progress, and by the monitor here, they are waiting to go. the microphones don't work. when framework, and we will bring you ahead line. >> the most powerful man in government. don: thank -- stuart: thank the good lord you don't get all the government you
pay for. >> didn't he have a megaphone? everything echoes around world, does he need a microphone? peter: one that was a good point. they are literally fixing the market. >> a little duct tape. stuart: they are trying hard. >> across the political spectrum. stuart: the mic works. we know what he is going to say, he will say he has a plan to reduce the amount of money he is printing. we will not say when he will reduce the amount of money. melissa has read this prepared statement and you brought to our attention the second to last. >> when we talk about the
unemployment figure of 6%, and the bomb vigilantes' everyone will run for the exit. and doesn't mean we will stop printing or slow down the bond buying and get to 6.5, we don't do it before then we may continue beyond that. and you are concerned about inflation rate, well below the 2% threshold is down 1%. and when you don't have any can't lower rates below zero. and he is concerned about low inflation. stuart: we know what he is going to stay, he is saying that now all. and 30 points on the dollar. that is when the action might start because politicians will
be asking questions. maybe republicans will -- made the democrats will say print some more. at has not started yet. i am joined by my esteemed colleague judge andrew napolitano. this is a fed credit, he doesn't even want the fed to exist but apart from that what do you make of what he will cut back on the printing presses at some point in the future. judge napolitano: melissa at some areas cogent and brilliant and truly helpful but what a sad state of affairs. when the financial world has to listen to the words that come out of the mouth of an unelected unaccounted for private banker who has the ability to print cash and make us feel artificially rich. and that rather than the engine of the free market. stuart: that is not so much a
criticism of the fed's in my opinion, a criticism of the obama administration. why isn't the obama administration creating growth in the economy by adjusting tax rates for individuals and corporations? judge napolitano: the obama administration believes it can create growth by printing money and giving away rather than incentivizing people, allowing people to keep more of their own money and incentivizing them to put it to means that would be truly productive. to specifically into your question he should print less. of you think you should print zero, anything close it to zero makes you happy. and our friends on wall street are listening to every word saying i will stop printing in 2018. stop buying today. so worried about that free cash flow stopping. stuart: stayed there. got to take a commercial break.
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i am joined by my colleagues, alaska everyone the same question, is the stock market rally the dollar 15,500 because been is printing money, ed butowksi first. >> it is not. the of short-term move is based on what he said but the reason stock prices are higher as corporate earnings are coming in fairly well. stuart: that is all you got to say? >> i got a lot more. i've thought was the lightning round. stuart: when it is the lightning round and i confused everybody. is this rally because of ben bernanke printing money? >> i couldn't disagree more. that is absolutely what it is all about, it is not easy money out there. you saw immediately when there was a hint he might cut back a little bit we saw the stock market faltered without question this is the market that can't stand on its own two feet when the training wheels come off we are in big trouble.
stuart: said critic justice -- judge napolitano: except that. my colleagues would. stuart: not that you know about wall street but is this the result of been printing? judge napolitano: i am not as qualified as my colleagues. it is obvious even to any viewer of the scene, it is drunk on free cash and pay off think he will give it to them in the future, they will borrow and buy and suspendedd stuart: you agree with that analysis? >> no. short-term moves you will see because the markets are driven by computer programs, and have moved and see them go higher and lower in the short run but in the long run there is no bottom line and i am begging for anyone between printing of money and corporate earnings. haven't seen it on any show anywhere. >> that is not what is spurring the stock market.
you see corporate profits go up without revenue. there isn't money out there. >> i don't want to go into the weeds. you asked about the stock market, not corporate earnings. let's talk about that. stuart: hold on a second. let me refer to everybody here. ben bernanke is printing money, deliberately keeping interest rates absolutely near zero, flat down. that doesn't affect it, it does. judge napolitano: matt is -- stuart: if you put interest rates all the way down it means if you buy a bond your rate of return is useless. is virtually zero so buying bonds is not very effective. by contrast, buying stocks is very attractive because your return is much better. anyone with money has to make the choice, put it in bonds, put it in gold, put it in stocks. with interest near zero put it in stocks, not bonds. go-ahead. >> the discount rate and fed
funds rate is set by policy, not printing of money. stuart: part of the fed policies to keep the federal funds rate and discount rate weighed down. >> it is all about -- it is all the policy that is driving investors into the stock market and from semantics' you are right, we are talking about their policy in general, easy money flowing however you define that weather through their bond buying program or low-interest rates has forced investors in the stock market has also accused the housing market and you wonder as we watch the 30 year rise what is going to happen to home buyers. initially these people get into the market because rate going up and it will kill the housing recovery and that is not good. stuart: the judge is next. judge napolitano: what is the inevitable consequence of artificially low interest rates? a bubble. that is what will happen because at some point they will rise to their natural rate and no one will be quick to pay those rates because they're used to free money. stuart: before we go to the
break. >> the difference is very important because the printing of money does not pushed short-term interest rates lower. is affecting on a long end and i look at corporations or corporate cfos and the printing of money does not benefit them unless you are at a bank. >> we are talking about policy in general, his entire policy right now has created an artificial rise in the stock market that i am afraid is going to go away when they back off if they ever do. stuart: some fireworks around the set in new york and dallas and looking for fireworks in washington because the queue when they should be coming along shortly. you will see when it happens. back in a moment.
stuart: ben bernanke answering questions, listen in please. >> july 10th, the s&p hit record highs. a couple quotes first. one above it described the stock market, in their hair trigger from the fed, dallas fed president richard fisher describes stock markets as being, quote, on the drug, easy money, you have described your threshold as providing guidance to the market but you also
qualified this threshold to provide guidance as to where the policy will change once those thresholds have been breached. recent survey of 55 in congress by the wall street journal give the fed the-for the guidance. can you comment on your guidance? and from president fisher's comments? >> certainly, mr. chairman. it is a difficult environment economically, financially and dealing with an president and monetary policy developments. i continue to believe we should do everything we can to of fries markets about the plans and how we expect to move forward with monetary policy. not speaking about these issues would have risked dislocation, moving of market expectations away from expectations of the committee. would increase buildup of leverage for risky positions in
the market, the unwinding of that is part of the reason with the volatility we have seen and we communicate as best we can and what our thinking is. i think markets are beginning to understand the message and the volatility is moderated. >> let me change subjects. this committee tomorrow will have a hearing on of bill designed -- and sustainable housing policy in america. the fed and number of years ago released a study that estimated fannie and freddie passed on a mere seven basis point subsidy in their interest rates and -- stuart: the subject matter of the questioning has moved away from ben bernanke and money
printing and move on to fannie and freddie. we are going to break away until they get back on track with this. you saw his prepared remarks. jeff just said do ben bernanke why did he go out there and make those statements on may 22nd and suggest you're going to cut off the money printed at some point? why did you do that? ben bernanke responded. >> he echoed a lot of the same comments the other day in front of the canada led -- economic group, getting a lot of volatility of the way at a time. i don't know if i believe that. thht is the very convenient answer after the fact to say that volatility you saw in the market was planned. we wanted to ring that out of the system. i don't know if that is true or works. stuart: may twenty-second he says i am thinking of capering, reducing money printing at some point in the future. the market goes flat out crazy.
and the market goes back again. judge napolitano: why should we have to divine between the lines as if it were reading the entrails of a goat in order to make profound decisions about how to invest? why can't they just be more forthcoming? >> the market rocks and rolls, we can't stand on our own two fee because the stock market is not as long as it should be. the economy hasn't recovered. judge napolitano: wall street is drunk on the cash. do we all agree on that? stuart: just called you the genius in dallas. wall street -- >> i agree with the genius part. the short-term moves in the market are going to be reactions by computer programs, you will see massive buy and sell
programs in the short run. in the long run the stock market has and always will move on earnings and expected earnings but something guy want to write address related to ben bernanke and his comments, we are targeting 6.5% unemployment. he is a smart man. he knows the unemployment rate is meaningless and the number we are looking for, we have to get to 350,000 net new jobs a month for 12 months. we are only halfway there. when he stands up and says things out looking better he is blind to every american saying things are better and we might have to cut it. stuart: hold on a second. congresswoman walters from california is asking a question. i want to listen to this. >> that the austerity policy apparently is significantly -- in the united states and to what extent can monetary policy offset the consequences of the
current fiscal policy? >> fiscal policy is focusing a bid too much in the long run. and according to the percentage point, and the twenty-two% growth, and congress has not addressed a lot of from long run issues when sustainability is not yet achieved. my suggestion to congress is to consider possibilities that involve less restrained in the near term and more action to make sure we are on a sustainable path and long run. that is broadly consistent with the i m f perspective.
>> i would like to ask a question about health and finance. i mentioned we will be leading, and -- stuart: some very interesting question about the impact on the economy of sequester cuts. as you pointed out this is fiscal policy she was asking about, not monetary policy saying that is having a bad effect on the economy. his response was we would like to sort things out in the long run. >> he said in prepared remarks he takes a dent out of the economy. god forbid we stop spending money. obviously the economy will fall off a cliff. give me a break. peter: when you interpret this as miss waters wants to print big-time, print a lot more money and -- >> she would be first to acknowledge that.
she and the democratic party, the democratic wing of the democratic party of which she is a principal member. stuart: what do you think of that? this is not the fed. this is the administration. miss waters wants them to print and spend a lot more money. what does judge andrew napolitano think of that? judge napolitano: show me where that is in the constitution where they can take it tax dollars and given away, she can point to that place in the constitution. stuart: they can take your tax dollars and spending on programs they consider legitimate. of judge napolitano: and programs authorized by the constitution. and they are so -- receiving large aspects. can't live without it. stuart: congress has been passing rules and regulations and make it constitutionally. judge napolitano: the federal reserve and federal income tax came into existence, one of the
worst years in american history. stuart: you won't get rid of a hundred years worth of history, are you? judge napolitano: me alone, no. if the president thought as i did, members of congress thought of why did of maxine waters yes. stuart: shall we go back to the q&a and see what else pops up? go. >> one small advantage is see this shows up immediately about cost of housing and maybe more powerful in that respect. the most important issue is disclosure and underwriting, making sure the cost of mortgage, even when payments go up? >> i appreciate your comments about the structure, and they are probably consistent with what we have about documentation
loans where we can't guarantee their picking out the mortgages and able to repay them. >> is there a question? i can't hear very well. the time the gentlelady -- >> the chair recognizes. for five minute. stuart: a little confusion whether the mic was open or not but we are about to be joined by congressman scott garrett, republican from new jersey, the chair of the capital market subcommittee in congress, just getting mikeed up right now. there he is. thanks for joining me today. i want to ask you your interpretation of ben bernanke's comments about the printing of money and when and if he is going to taper it down.
>> my initial take away from it is not any time soon. why do i say that, that he wanted to stress. and he went on after that basically saying as long as he did not take two benchmarks, does not matter if they hit one or the other or both of them, it continues the accommodating policy. stuart: it doesn't sound like this is really new. it is not revelation, it is more of what he said in the past. the key statement came on may 22nd when he raised the issue that at some point in the future they will stop printing quite as much money. that was a signal of a change in direction. this is just follow through. >> i agree with that. the market's initially took some
of those comments as saying at some point in the future might be sooner rather than later and that is why use of volatility in the marketplace. and one of the final questions he submitted an answer in writing. isn't there a potential in what he is doing, max excess of regulation in a marketplace? never answered that question and he said yes, that is a possibility with accommodation they are doing, but don't worry their monitoring that. and it coincides with the volatility everything is fine. my take away on that is this, we see volatility in the last month and half in the marketplace. they have not had fundamental changes in the fundamentals. the only variable has been the fed's comments and activity.
although he is monitoring it, it seems the volatility we see in the markets that are not because of fundamentals but specifically as always just because of the fed's actions or comments. don: stuart: i have to break away because back in the hearing room, a republican congressman has asked ben bernanke if he doesn't think maybe wall street has become too dependent on cheap and easy money. listen to the response. >> i don't think the. working through the mechanisms we have which are financial interest rates and financial asset prices, but our goals are jobs, our bowl barlow inflation and we have not always had the success we would like but we would like some success. i would respond to your second one. i don't think 13-3 significantly modified by dodd-frank could be used to bailout an individual firm. according to dodd-frank 13-3 is
a broadly based program that has to be open to wide variety of firms in the category, it cannot be used to lend to an insolvent firm. it requires the approval of the board and the secretary of the treasury to be used, and it must be immediately communicated to the congress. i do not think 13-3 could be used in that way. obviously maybe there's some disagreement within your organization but want to work with you on trying to tighten that. very quickly on the last minute here on the taylor room, recent survey of 55 economists by the wall street journal give the federal reserve a great of d minus. i hate to see what was ten years ago. do you believe that these facts indicate monetary policy guidance functions that needs more work? >> i don't know what the rate refers to. it could be that there are many voices of the fed, a lot of different views, there is a
benefit to having a lot of different views, people can hear the debate. on the other hand people looking for a single signal can be confusing. i think we're doing a reasonable job of communicating our intentions and plans in the context of a complex monetary policy strategy. >> i have ten seconds. i will make it more of a statement the follow-up written. stuart: congratulations to our producer and perfect timing. ben bernanke was asked do you think maybe wall street has become too dependent on cheap and easy money and as we went to ben bernanke he said i don't think so. that elicited a guffaw from the judge and from melissa as well. judge napolitano: he has taken an oath. >> followed up by saying we're focus on main streets and creating jobs and deflected and didn't think of that. stuart: we have been sitting here all this time and the market has not moved. when he started, when the market
started to work, we had the dow up 22. now it is a 16. no market movement whatsoever. >> he didn't do anything to dissuade the market from believing the money train is going to stay right where it is. stuart: precisely right. even though you disagree with the fed, melissa is right. no indication they will quit printing and the market does not go down. ed butowksi in dallas, thank you very much for appearing on a difficult day, you are indeed a genius and we thank you for being here and judge and melissa great stuff, the hearing continues. i am sure you will see more of it on the fox business network. my time is up. deegan mcdowell and connell mcshane. connell: everyone talking to dagen mcdowell is almost like the market is used to the ben bernanke comments at some point. nothing crazy today, we will be interpreting it all day long. dagen: absolutely. 50 way that is the dow up a little under 20 points.
that is where they were in the futures trading this morning when the testimony was first released at eight:30 eastern so that would suggest ben bernanke hasn't said anything that deviated wildly from the prepared marks. connell: in this question and answer session, the house of representatives, anything can happen as they say. the most recent questionnaire of the chairman, we will rejoin the hearing now and as development work we will keep you up-to-date on all the news of the day but live to capitol hill once again the ben bernanke hearing. >> housing market which has been a drag on the economy the last couple years has recently begun to show signs of turning around. do you believe the increase in housing prices provide evidence the fed's monetary policies work. is there a casual correlate of relationship between the two. >> i think so. his